Tire makers ride innovation for global edge

Chinese tire suppliers are expanding their presence in Japan's racing market through product development and commercial innovation, offering a case study in how manufacturers can strengthen overseas competitiveness and pursue higher-value exports, industry insiders said.

"Fifteen years ago, Chinese tires were rarely seen at Japanese racetracks. Now they are everywhere," Liu Tie'an, head of business in Japan at Sichuan Yuanxing Rubber Co Ltd, told Workers' Daily at a racing event in Japan's Aichi prefecture in September.

Liu said the initial test tires achieved only 50 percent of the performance of comparable Japanese products. His team modified the tires within a week, raising performance to 60 percent. Further changes to tread grooves and drainage raised performance to 70 percent.

Liu also described a project three years ago in which tires from a Chinese manufacturer were tested on a Formula 4 racing car at Japan's Fuji Speedway. The tires were later supplied for use on retired racing cars, meeting the needs of operators who struggled to find suitable products at affordable prices.

A representative of a Japanese racing tire company told Workers' Daily that Chinese tires outperformed leading Japanese products in grip and resistance to wear, while selling for less than 60 percent of the price of Japanese equivalents.

Commercial innovation has supported that expansion. Liu said traditional distribution arrangements involved several layers of intermediaries between Japanese buyers and Chinese manufacturers, raising costs and slowing responses.

His team instead connects end customers directly with factories, organizes factory visits and lets buyers select suppliers, while monitoring quality throughout the process.

Liu said factories typically require a minimum order of one container, or about 800 tires, a threshold that smaller dealers find difficult to meet. His team combines orders from 10 customers into a single shipment, meeting demand for a variety of products in small quantities while making the orders viable for manufacturers.

The experience comes as China's 15th Five-Year Plan (2026-30) calls for improving the quality and efficiency of foreign trade. Analysis published on the National Development and Reform Commission's website argues that in addition to innovation, upgrading trade requires industrial and supply chains to work more closely together. It involves creating value through core technologies and advanced manufacturing, as well as brands, distribution and services.

The tire industry's breakthrough in Japan reflects China's push to improve the quality of foreign trade under the 15th Five-Year Plan, said Wang Peng, a researcher at the Beijing Academy of Social Sciences.

Wang added that the breakthrough shows a shift from low prices and high volumes toward upgrading the entire value chain for demanding markets.

"The model provides an approach to overseas expansion that other manufacturers can replicate. Companies can work with established local partners to access distribution and services quickly. Combining technological and business model innovation helps companies find opportunities to differentiate themselves in niche markets."

Looking ahead, Wang said manufacturers can move beyond domestic production and global sales by establishing local production capacity in markets worldwide.

"They can adapt to regional trade rules and translate supply chain resilience, adaptability and brand influence into long-term competitiveness. This can help industries continue moving up global value chains," Wang said.

tanguoling@chinadaily.com.cn